Net operating income under variable and absorption costing will generally:
a. always be equal.
b. never be equal.
c. be equal only when production and sales are equal.
d. be equal only when production exceeds sales.
When production is equal to sales, meaning there is no difference in the beginning and ending inventories, the operating income under both methods is the same.
Thus the answer is C. be equal only when production and sales are equal.
Net operating income under variable and absorption costing will generally: a. always be equal. b. never...
6. When production are not more than sales for a period, absorption costing net operating income will generally be than variable costing net operating income. A) greater B) lower C) equal D) A & C E B &C 7. The master budget process usually ends with the budgeted budet: A) sales B) labor C) materials D) balance sheet E) income statement
(e) The net operating income (loss) under absorption costing is less than the net operating income (loss) under variable costing in Year 2 because: (You may select more than one answer. Single-click the box with the question mark to produce a checkmark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) Units were left over...
Variable-costing income will usually exceed absorption costing income when a. Production exceeds sales b. Sales exceed production c. Production and sales are equal d. None of the answers provided
Question 21 (1 point) Operating income reported under absorption costing will generally exceed operating income reported under variable costing for a given period in which of the following cases? If the variable manufacturing overhead exceeds the fixed manufacturing overhead. If production exceeds sales for that period. None of the options provided are correct. If production equals sales for that period. If sales exceed production for that period. w wwwwwwwwwwwwwwwwwwww wwwwwww Question 22 (1 point) The term "gross margin" for a...
(e) The net operating income (loss) under absorption costing is less than the net operating income (loss) under variable costing in Year 2 because (Select all that apply.): 3. Make a note of the absorption costing net operating income (loss) in Year 2. At the end of Year 1, the company’s board of directors set a target for Year 2 of net operating income of $70,000 under absorption costing. If this target is met, a hefty bonus would...
find net operating income (loss) for year 1 under absorption costing find net operating income (loss) for year 2 under absorption costing find net operating income (loss) for year 1 under variable costing find net operating income (loss) for year 2 under variable costing area of your worksheet so that it А B с Chapter 6: Applying Excel Data $ 344 $ 146 Selling price per unit Manufacturing costs: Variable per unit produced: Direct materials Direct labor Variable manufacturing overhead...
EKP's unit production cost under variable costing is $5, and $7 under absorption costing. Net income under variable costing was $9000 and $11000 under absorption costing last year. EKP sold 25500 units. How many units did it produce? a. 26500 b. 24500 C. 27300 d. 23500
a. what is the net operating income (loss) in year 1 under absorption costing? b. what is the net operating income (loss) in year 2 under absorption costing? c. what is the net operating income (loss) in year 1 under variable costing? d. what is the net operating income (loss) in year 2 under variablecosting? 2. Change all of the numbers in the data area of your worksheet so that it le А B С 1 Chapter 4: Applying Excel...
Variable Costing and Absorption Costing - under the traditional costing approach, absorption costing, or full costing, products absorb all costs incurred to product them which can result in misleading product cost information for decision-making. Under variable costing only costs that change in total with changes in production level are included in product costs. The difference between the two costing methods is the exclusion of fixed overhead from product cost for variable costing. Post your response and ideas of the following...
How does contribution margin differ from gross margin? VIRUS How will net income under variable costing compare to net income under absorption costing in the following three situations? Explain briefly the cause of any differences. (a) Units produced equal units sold (b) Units produced exceed units sold (c) Units produced are less than units sold 6. (20 Points) Lukin Corporation reports the following first year production cost into Units produced Units sold Sales price Direct labor Direct materials Variable overhead...